Seasoning Problems
Buyers can't purchase my house can get a loan because I've owned it for less than 6 months.
Loan Brokers say that home must be "seasoned" or owned for 1-2 years before any buyer can get a loan.
Is there any way around this?
I put the house in my own name.
I live in Georgia.
Thanks,
Mrs. Meltzer
I know of a company that will do these. But you will still have to show why the property has gone up in value.
Have you rehabed it? Can you show what you have done?
It is best if you take before and after pics and keep a log of everything that is done.
there are lenders that allow int pictures to show before n after. hope you have all reciets,my last deal went up in smoke due to seasoned issues, i got it done but it was all about what the lender was willing to lend even though the appraisel said 1 thing the feild review said the same the lender said something different still. it can be done for what amount up to the lender.
One way around this is to use owner financing. Basically you will write your own mortgage, and then you can sell that mortgage for cash at a discount. The mortgage buyers don't have any title seasoning requirements. Read some of the posts in the paper/notes forum for more information. Good luck.
Bansal is right on.
Contact me if you'd like to set up a simultaneous closing.
James
Ok guys, I just bought a property for $86,900 from Fannie Mae. I am a realtor so I pulled the comps. It's worth $110K. It's pristine. new Carpet, new paint, new kitchen, shines like a model home inside.
I bought at 95%LTV and need to refinance it in 30 days. I need a no seasoning refi person. If i did a note, i'd have to do it for $110 but note buyers only want to offer 65% 70% on the note value which doesn't make me any money.
Let me know if you have a good source.
New FHA anti flip guidelines have made it harder for us flippers to sell to FHA buyers, BUT there are FHA clone loans that you can use to bypass the system. Most of the clone programs have the same deal as FHA, however the seller does NOT have to contribute to the closing costs. More info? Email me
PCGlobal,
no email address listed in your profile.
Mrs. Meltzer
Try Greenpoint mortgage, I purchased a investment property with the property only being in the previous owners name for 4 to 6 months.
Greenpoint has no seasoning requirement. There rates are not the best and service is not very fast. But for non seasoned refies you must look them up.
They have lowered the FICO requirments and raised the LTV's that they will do on these. But I think they have a 10 property max limit or 1 mil max.
There are a handful of lenders left in the industry who don't really care on seasoning of title (not to be confused with seasoning for cash-out refis). Yes, greenpoint is the leader of this pack - and personally I have never dealt with them - but heard a ton of bad rap about them from other mtg.brokers... find out if greenpoint operates in GA (coz the GA anti-predatory rules of 2002 ensured that most B/C lenders left the state) and if they are in GA, find out if they work retail (directly with consumers).
Finally, you are an investor (seen your posts before!) - start keeping a detailed list of lenders who work with no-seasoned properties in your investing region..start with the banks on the corner ..call each of them and ask them the question and from here on you will never have problem selling non-seasoned properties!
Need Clarification:
Purchase:
if you purchase a property NOO that has say $20,000 worth of equity based on appraisal, how can you just get a 2nd to tap into that equity w/o having brokers tell you to wait 12 months of "seasoning"? You buy it cheaper than market value for the purpose of tapping into the equity...but it seems that lenders only want to refinance the whole thing!!!
Please clarify. NO FHA. Just convention, single-res/condo/townhouse. Who does this type of 2nds? Thanks.
I am really confused about the topic of this post?
Are you guys saying that you cant't sell a rehabbed property unless you hold it for 1-2 years?
Most rehabbers turn around in 3 months.
Thank you
Richard
Richard,
Title seasoning would be an issue for you if your buyers are using FHA financing. If your buyers are purchasing with a NON-FHA program, it shouldn't get in the way.
Good Luck,
Jeff
FHA requirements are that you own the home for 90 days if you are making less than 100% profit. If you are making that much they require you hold it for 180 days. Or show receipts for the work you have done to justify the increase.
VA has no title seasoning requirements, but most lenders are requiring the 90 days FHA requires.
Send the buyers to a mortgage broker. They will pay more in closing cost, but they will find a program that works for all involved.
Just got a VA offer on a property, buyer wanted to settle in thirty days. Needed another 45, so set settlement up for the 91st day, and rented to the buyer for the 45.
Everyone was happy.
An option is too give your new buyer a Lease/Op, take the down (or as much of it as they'll give you) as op dep., give a rent credit, and they can exercise their op in year to satisfy any seasoning requirment!! They can also record the Lease/op for their protection..
Chris
Well FHA has done it again. In order to stem the flow of "flips" about 4 different definitions of this. They have come up with a way to stop it. They appraise the house with the title. New and very inventive. How they do this i dont know. How you can appraise a house with a title is something I dont understand. Maybe someone else does. Anywy the rule i believe that a caution is pulled everytime someone pulls a fha case number and is subject to the new flipping rule. IE appraising the house with the title. I cant have increased in value over 5% of the original sales price. There is a way around this not with a loan either. Anyway remember if theres a problem the smartest investors will find a quick legal solution. As to all of you people that have done what the FBI considers a flip. I hope you get caught and put in prison for a long time your ruining it for all of us.